Did you know that about one-quarter of all businesses in the US are LLCs? When you set up an LLC, you get a business entity with limited liability company protection, helping you and your business partners to be protected from the liability of running the LLC.
This can help your business protect a pool of assets, ensuring that each business owner has their assets protected. An LLC is a great way to start an LLC and is especially beneficial for small businesses and startups.
Here’s how to set up an LLC in the US in 2021 or 2022.
Select a State
Selecting the right state is important and you’ll want to consider factors like where your business will be located, taxes, and business regulations. Once you’ve selected a state, you’ll need to file the proper paperwork and pay the required fees.
You’ll also need to create an operating agreement like https://www.nav.com/business-checking/, which outlines the ownership and management structure of your LLC.
Choose a Business Name
One of the first choices you’ll make when forming your LLC is the name of your company. The name you choose will be used on all of your official documents and communications, so it’s important to choose a name that is easy to remember and conveys the right message about your business.
Once you’ve chosen your business name and confirmed availability, you can proceed with registering your LLC.
File Formation Paperwork
You will need to file formation paperwork with the state in which you plan to operate. This will include articles of organization and a statement of information.
Furthermore, you must draft an operating agreement that spells out the obligations of each member of the LLC.
Apply for an EIN
You’ll need to apply for an employer identification number (EIN) from the IRS. This is a nine-digit number that is used to identify your business. Once you have your EIN, you’ll need to file the paperwork with your state to officially form your LLC.
Choose a Registered Agent
A person or company designated as your LLC’s registered agent consents to accept legal papers on the company’s behalf. They must be based in the state where your LLC was created, have a physical address there, and be accessible during regular business hours.
Additionally, the authorized agent must be prepared to promptly send any legal documents they get to you.
Ways to Set up an LLC
In conclusion, an LLC is a great way to protect your assets and limit your liability. Planning to set up an LLC is easy and can be done in a few simple steps.
You can set up an LLC online or through a professional service. Contact a professional service for more information on setting up an LLC.
Are you looking for more helpful tips? Look through our blog and learn.